The most popular models of decision making use a single criteria to evaluate projects or lotteries. However, managers often want to consider multiple criteria when evaluating projects. We consider the application of one major dual criteria model from psychology. We examine the issues incolced in full maximum likelihood estimation of the model using observed choice data. We propose a general method for integrating the multiple criteria which we believe is attractive from a decision-theoretic and statistical perspective. Finally, we apply the model to observed choices from a major natural experiment involving intrinsically dynamic choices over highly skewed outcomes. We find that behavior in the field, over large stakes, is different than behavior in a comparable laboratory setting with small stakes.

Length: 52 pages

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